Five Stocks That Blockchain ETFs BLOK and BLCN Are Both Invested In
- Revealed via a head-to-head comparison of the two blockchain-based ETFs
January 17th definitely had a mixed bag to offer to the world of blockchain. While on the one hand, and on a positive note, the day saw the first two blockchain-based ETFs; the Amplify Transformational Data Sharing ETF (BLOK) and the Reality Shares Nasdaq NexGen Economy ETF (BLCN) begin trading on US exchanges; on the other it witnessed a cryptocurrency market slump that took all major cryptocurrencies down with it. Cryptocurrency offerings remain an important and major example of blockchain applications.
BLOK vs BLCN: Head-to-Head Comparison of the Only two Blockchain-based ETFs
We compared the two funds on various criteria, to arrive at the following similarities and distinctions. We also identified 5 key stocks that figure amongst the top 10 portfolio holdings of both these funds. With the cryptocurrency market down, we may see some investors making a move from the more volatile cryptocurrency market to the stock market. Here, stocks of companies that are invested in blockchain technology and its applications are likely to command special attention from blockchain enthusiasts.
And here are the 5 stocks that made it to the top 10 holdings of both these funds:
1. Overstock (OSTK)
Overstock.com is one of the earliest blockchain technology adopters in the corporate world. Its majority-owned subsidiary, t0.com, Inc. (“tZERO”), is focused on the development and commercialization of financial technology based on blockchain technologies. tZERO’s distributed ledger platform would be the first and only regulated Blockchain trading system in the world. More recently, Medici Ventures, Overstock’s wholly owned subsidiary, announced its lead position in a $2.2 million seed-funding round for mobile online voting platform Voatz, which works to make electronic vote-casting safe and secure by using biometric verification and blockchain technology for “immutability.” The company’s blockchain bets have done well for the company’s stock, which is up over 350% over the last 6 months. OSTK commands 5.27% of the BLOK portfolio and 2.39% of the BLCN portfolio.
2. International Business Machines (IBM)
IBM is betting big on blockchain. After all, it was one of the first big companies to recognize the potential of distributed ledgers, contributing code to the Linux Foundation’s HyperLedger open-source effort, and encouraging startups to try the technology on the cloud for free. Also, the company has already worked with over 400 clients to implement blockchain applications across sectors. More recently, the company has teamed up with Maersk to create blockchain-based logistics solutions. The company’s stock is up over 10% over the past 6 months. IBM commands 4.46% of the BLOK portfolio and 2.37% of the BLCN portfolio.
3. Hive Blockchain Technologies (HIVE.V) (HVBTF)
Hive Blockchain Technologies is the first publicly-listed blockchain infrastructure company that bridges blockchain and cryptocurrencies to traditional capital markets. The company has entered into an exclusive partnership with Genesis Mining, the world’s leading cryptocurrency mining hashpower provider. The company has a state-of-the-art GPU-based cryptocurrency mining facility located in Iceland, and they have recently announced the completion of the first phase of their multi-phase large-scale GPU-based mining build-out in Sweden, where they have commenced Ethereum mining. The company’s Toronto-listed stock is up about 124% over the past 6 months. HIVE commands 4.17% of the BLOK portfolio and 2.17% of the BLCN portfolio.
4. SAP SE (SAP)
German multinational software company, SAP SE (SAP) has a blockchain co-innovation initiative in place, currently boasting 27 customers and partners, with a total market value of $819 billion. Prominent names include Capgemini, Deloitte, GrainCorp, HCL Technologies, HERE Technologies, Moog Inc., Natura Cosméticos S.A., NetApp, and PeerNova. The initiative aims to include blockchain solutions in its offerings by integrating the digital ledger system into the Internet of Things (IoT), and manufacturing and digital supply-chain solutions using the SAP Cloud Platform Blockchain service. The company is also a part of the Alastria Consortium and BiTA blockchain industry alliance. SAP stock is up 24% over the past 1 year. SAP commands 2.98% of the BLOK portfolio and 2.15% of the BLCN portfolio.
5. SBI Holdings Inc (SBHGF)
In October 2017, Japan-based SBI Holdings, Inc., the financial services division of SBI Group, expressed its commitment “to acquiring systematic knowledge on blockchain, distributed ledger technology, and cryptocurrencies” and “establishing a new financial ecosystem based on cryptocurrency.”Its subsidiary, SBI Ripple Asia, has already implemented RC Cloud, Ripple’s unified blockchain platform for domestic and cross-border payments. In December 2017, the company also announced the establishment of a ‘Consortium of Payment Card Industries utilizing Blockchain Technology’ together with JCB, Credit Saison, and Mitsui Sumitomo. The consortium has already developed a new payments app powered by Ripple’s blockchain technology that enables real-time payments using a phone number or QR code. SBHGF stock has surged about 67% over the past 6 months. The company commands a 5.52% share in the BLOK portfolio and 2.13% of the BLCN portfolio.